TRAVEL & TOURISM GLOBAL ECONOMIC IMPACT & TRENDS...

TRAVEL & TOURISMGLOBAL ECONOMIC IMPACT& TRENDS 2019

“As some nations look increasingly inward, Travel & Tourism becomes even more critical as an engine of economic development and as a vehicle for sharing cultures and building mutual understanding. ”Gloria Guevara Manzo, President & CEOWorld Travel & Tourism Council

For more information, please contact:

ROCHELLE TURNER | Research [email protected]

NEJC JUS | Economic Research [email protected]

GLOBAL ECONOMIC IMPACT & TRENDS 2019

FOREWORD

As one of the world’s largest economic sectors, Travel & Tourism creates jobs, drives exports, and generates prosperity across the world. The sector, comprised of a wide range of industries, aims to serve and support domestic, international, business and leisure visitors. Companies, large and small, in industries ranging from accommodation and transportation

to food & beverage, retail and culture and sports & recreation, all strive to create products and services that bring people together, support communities and celebrate the wonders that our world can offer.

In its annual analysis quantifying the global economic and employment impact of Travel & Tourism in 185 countries and 25 regions, the World Travel & Tourism Council’s (WTTC) research reveals that the sector accounted for 10.4% of global GDP and 319 million jobs, or 10% of total employment in 2018. The division of overall spend is firmly weighted towards the leisure market, which represented 78.5% of the total compared with 21.5% for business spend, and the sector accounted for 6.5% of total global exports and 27.2% of total global service exports. Domestic tourism, which represented 71.2% of all tourism spending in 2018 and had the strongest growth in developing nations, continues to support opportunities by spreading development and regional economic benefits and building national pride.

The continued rise in the number of middle class households and the solid growth in global consumer spending once again enabled the Travel & Tourism sector’s growth to reach 3.9%, outpacing the global economy for the eighth consecutive year. The USA, China, Japan, Germany and the UK were the top five markets in 2018, collectively representing 47% of the global Travel & Tourism GDP.

Across the regions in 2018, Asia-Pacific remained a strong performer, growing by 6.4%, but North Africa’s performance – with 8.6% year on year growth – is particularly notable. This growth not only showcases the sector’s resilience and capacity to bounce back from security shocks, but also its ability to spread its benefits widely across the world. In effect, Ethiopia, Ecuador, St Kitts and Nevis, Egypt and Turkey led the world for Travel & Tourism GDP growth in 2018.

This growth, in turn, enables job creation. Travel & Tourism, which already supports one in every ten jobs on the planet, and has accounted for one in five of all jobs created across the world over the past five years, is a dynamic engine of employment opportunities. Jobs in Travel & Tourism particulary support women, youth and other, often marginalised groups of society.

Factors influencing the flow of travellers around the world, such as a destination’s attractiveness and its currency strength, will continue to affect traveller behaviour in the coming year. Undoubtedly, new developments will emerge alongside these existing factors. As some nations look increasingly inward, Travel & Tourism becomes even more critical as an engine of economic development and as a vehicle for sharing cultures and building mutual understanding.

The most effective policy and investment decisions are made with empirical evidence. For nearly 30 years, WTTC has been proud to provide the only global comparative evidence base for Travel & Tourism’s economic performance. This data empowers both public and private bodies to make sound economic decisions that can support sustainable and inclusive growth and provides the comparative evidence to analyse the impacts. As a result, governments across the world are better able to strategically plan and develop more effective policies, enhance their decision-making relating to investment, and further cooperate with the private sector to ensure the Travel & Tourism sector provides the greatest opportunities for societies to prosper.

Gloria Guevara ManzoPresident & CEO

CONTENTS

01 ECONOMIC IMPACT: GLOBAL 6

The top numbers on the global contribution of Travel & Tourism, today and into the future.

02 ECONOMIC IMPACT: REGIONAL 10

A look at Travel & Tourism's contribution at a regional level, including highlights and key developments.

03 LARGEST & FASTEST GROWING TRAVEL & TOURISM ECONOMIES 12

Top 20 largest and fastest growing Travel & Tourism economies.

04 LEAGUE TABLES 14

A look at the top 10 national market impacts by GDP, employment, visitor exports and Travel & Tourism capital investment, today and into the future.

05 GLOSSARY 16

Key terms used in the Travel & Tourism Economic Impact 2019 research.

HIGHLIGHTS

HIGHLIGHTS• Travel & Tourism contributed US$8.8 trillion to the global economy in 2018.

This equates to 10.4% of global GDP

• The sector grew by 3.9% in 2018; faster than the global economy’s growth of 3.2%. It outpaced overall economy growth for the eighth consecutive year

• Travel & Tourism was the second fastest-growing sector in 2018, only marginally behind Manufacturing, which grew by 4.0%

• Across the world more than 319 million people’s jobs are supported by Travel & Tourism. This represents 10.0% of all employment, or one in every ten jobs worldwide. The sector has accounted for one in five of all net new jobs created across the world over the past five years

• Our forecasts show that there will be 100 million additional jobs created across the world over the next ten years in Travel & Tourism. This means that one in every four new jobs will be created by the sector over the next decade

• In terms of spending, contribution is firmly weighted towards the leisure market which in 2018 accounted for 78.5% of total Travel & Tourism spending compared with 21.5% from the business market. Domestic visitor spending makes up 71.2% of the total compared to 28.8% from international visitors

• Asia-Pacific was the strongest-growing region in terms of Travel & Tourism GDP in 2018, followed by Africa. China alone contributed one quarter of global Travel & Tourism growth last year

• USA and China remained the largest Travel & Tourism economies in 2018, together accounting for 35.2% of the world’s total Travel & Tourism GDP, followed by Japan, Germany and the UK

• The world’s fastest-growing countries in terms of Travel & Tourism GDP are dominated by emerging and developing economies. In effect, Ethiopia (+48.6%), Ecuador (+21.6%), St Kitts and Nevis (+16.8%), Egypt (+16.5%) and Turkey (+15.0%) led the world for Travel & Tourism GDP growth in 2018

GLOBAL ECONOMIC IMPACT & TRENDS 2019 | 5

1.1 CONTRIBUTION TO GDP

TRAVEL & TOURISM OUTPACES GLOBAL ECONOMY GROWTH FOR THE EIGHTH CONSECUTIVE YEAR

Travel & Tourism is a key sector for economic development and job creation throughout the world. In 2018, the sector’s total contribution to the global economy reached US$8.8 trillion (equating to 10.4% of global GDP). The division of overall spend is firmly weighted towards the leisure market which in 2018 accounted for 78.5% of the total compared with 21.5% from business spend.

Meanwhile, spending by international visitors represented only 28.8% of all tourism spending in 2018 with the remaining 71.2% of spending coming from domestic visitors. While countries tend to focus on international tourism given inbound revenue through exports, domestic tourism is an important tool for regional economic growth and development1.

The continued rise in the number of middle-class households, solid growth in global consumer spending, low unemployment rates, continued rebound from security threats, currency depreciation and visa relaxation in several countries around the world enabled Travel & Tourism’s growth to reach 3.9% in 2018, a rate higher than that of the global economy for the eighth consecutive year. At a country level, Travel & Tourism outpaced wider economy growth in 102 out of 185 countries, including overall economy growth in 13 of the G20 countries.

01TRAVEL & TOURISM’S CONTRIBUTION TO THE WORLD'S ECONOMY

21.5%BUSINESS

78.5%LEISURE

28.8%INTERNATIONAL

71.2%DOMESTIC

10.4%US$8.8 trillion

INTERNATIONAL VISITOR SPENDGLOBAL TRAVEL & TOURISM SPENDING

TOTAL CONTRIBUTION TO GDP

27.2%OF TOTAL GLOBAL SERVICE EXPORTS

6.5%OF TOTAL GLOBAL

EXPORTS

1 | ECONOMIC CONTRIBUTION: GLOBAL PERFORMANCE

1 See https://www.wttc.org/publications/2018/domestic-tourism/ for further details on the importance and impact of domestic tourism

6 | WORLD TRAVEL & TOURISM COUNCIL

CHART 1: WORLD’S TRAVEL & TOURISM GDP GROWTH VS. ECONOMY GDP GROWTH, 2011-18

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

2011 2012 2013 2014 2015 2016 2017 2018

Global economy GDP growth (%)Global T&T GDP growth (%)

In addition to outpacing global economic growth, Travel & Tourism was the second fastest-growing sector in the world in 2018, ahead of Healthcare (+3.1%), Information Technology (+1.7%) and Financial Services (+1.7%). Its growth was marginally behind Manufacturing, which grew by 4% in 2018.

CHART 2: T&T GDP GROWTH COMPARED WITH OTHER SECTORS, 2018

Travel & Tourism GDP growth in 2018 was particularly driven by spending from international visitors, which grew by 4.2%, and spending on leisure (+4.1%). This led the share of international spending to increase from 27.3% of the total spend in 2017 to 28.8% in 2018 and the share of leisure spend to rise to 78.5% from 77.5% in 2017.

In terms of the countries’ share of contribution to global Travel & Tourism growth last year, two countries dominate; one quarter (25%) came from China while the USA provided a further 12%. Other major contributors include India with a 6% share, while Turkey, France and Japan each contributed 4% to the sector’s growth in 2018.

MANUFACTURING

TRAVEL & TOURISM

CONSTRUCTION

RETAIL & WHOLESALE

HEALTHCARE

AGRICULTURE

FINANCIAL SERVICES

COMMUNICATION

0% 1% 1% 2% 2% 3% 3% 4% 4%

4.0%

3.9%

3.4%

3.3%

3.1%

1.8%

1.7%

1.7%

CHINA: 25%

USA: 12%

INDIA: 6%

TURKEY: 4%

FRANCE: 4%

JAPAN: 4%

REST OF WORLD: 45%

CHART 3: CONTRIBUTION TO GLOBAL TRAVEL & TOURISM GDP GROWTH, 2018


1 | TRAVEL & TOURISM’S CONTRIBUTION TO THE WORLD’S ECONOMY

Forecasts point to a 3.6% expansion for Travel & Tourism in 2019, faster than an expected global economy growth of 2.9%.

Source: Oxford Economics / Haver Analytics

WHERE WILL FUTURE TRAVEL & TOURISM GROWTH COME FROM?

Travel & Tourism’s growth in 2019 is expected to remain resilient despite a slowing global economy. Our forecasts point to a 3.6% expansion for Travel & Tourism, faster than an expected global economy growth of 2.9%. Future growth for the sector will be driven by continued visa relaxation and currency depreciations, both helping to attract higher numbers of international visitors. The continued rise of middle-class households will also make a significant contribution. With over 50% of the global population now categorized as 'middle class' or 'rich', more and more people can afford to travel. Research suggests that domestic tourism demand picks up at an income level of about US$35,000, while international travel takes off at around US$50,0002.

The chart below shows the number of additional households in key markets that have the real potential to become ‘new travelling households’ over the next ten years. By 2029, there are expected to be nearly 67 million ‘new travelling households’ in China, followed by India with 14 million and the USA with 9 million. This is likely to be reflected in countries’ increased contribution to Travel & Tourism GDP. China is expected to account for 35% of the world’s absolute change in Travel & Tourism GDP during 2018-29, followed by the USA (11%) and India (6%).

CHART 4: NEW TRAVELLING HOUSEHOLDS – NEW HOUSEHOLDS WITH INCOME > $35,000, 2029 VS. 2019

2 See Goldman Sachs ladder of spending. https://www.businessinsider.com/goldman-sachs-on-what-the-world-wants-2013-10?IR=T

VENEZUELAARGENTINA

SPAINITALY

AUSTRALIACANADA

RUSSIAFRANCE

SOUTH KOREAGERMANY

UKMEXICO

BRAZILUSA

INDIACHINA

0 5 10 15Millions

66.5M


1.2. CONTRIBUTION TO EMPLOYMENT

ONE IN FIVE OF ALL NEW JOBS WERE CREATED BY TRAVEL & TOURISM OVER THE LAST FIVE YEARS

Travel & Tourism is one of the leading job creators across the world, with more than 319 million jobs supported by the sector. This represents 10.0% of all employ-ment, or one in every ten jobs worldwide. The sector has accounted for one in five of all net new jobs created across the world over the past five years and is a dynamic engine of employment opportunities. Jobs in Travel & Tourism particular-ly support women, youth and other, often marginalised, groups of society3. Travel & Tourism was a major contributor to net job creation in countries where the sector is particularly important to the economy; in Greece, Portugal and the UAE, it created a remarkable 71%, 60% and 47% of all new jobs, respectively.

Our forecasts show that there will be 100 million additional Travel & Tourism jobs created across the world over the next ten years. This means that one in every four new jobs will be created by the sector over the next decade. Asia-Pacific will account for 68% of all jobs generated during this period, with China alone accounting for 41%.

CHART 5: TRAVEL & TOURISM TOTAL CONTRIBUTION TO EMPLOYMENT AND SHARE OF NET JOB CREATION (2013-2029)

35%

30%

25%

20%

15%

10%

5%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

T&T contribution to employment (%)Net job creation (%)

3 See https://www.wttc.org/-/media/files/reports/2019/generating-jobs-for-youth.pdf and https://www.wttc.org/-/media/files/reports/2019/driving-womens-success-2019.pdf for further details on the importance of Travel & Tourism’s employment to youth and women

GLOBAL ECONOMIC IMPACT &TRENDS 2019 | 9

2 | TRAVEL & TOURISM’S CONTRIBUTION TO REGIONAL ECONOMIES

02TRAVEL & TOURISM’S CONTRIBUTION TO REGIONAL ECONOMIES

3.5

CHART 6: REGIONAL TRAVEL & TOURISM GDP % GROWTH (2018)

2018 Growth highlighted in green when it is above global Travel & Tourism GDP growth of 3.9%

Latin-America and the Caribbean: In Latin America, Travel & Tourism grew by 2.4%, more than twice as fast as the overall economy. Growth has been driven by international visitor spending on the back of falling currencies (e.g. Argentina), visa relaxation (e.g. Brazil) and as some countries (e.g. Ecuador) open up to foreign airline operators. Indeed, the fastest growth was witnessed in Ecuador (21.6%), while some of the larger Travel & Tourism economies (Brazil, Colombia and Peru) also witnessed respectable levels of growth. In the Caribbean, Travel & Tourism’s growth of 2.1% continues to be driven by the post-hurricane recovery.

AMERICAS

US$2.3 TNTOTAL CONTRIBUTION TO GDP 2.3%North America: Travel & Tourism GDP growth reached 2.3% in 2018. The USA remains the main driver of regional activity, accounting for 83% of North America’s Travel & Tourism total contribution to GDP (and 18% of global contribution). Growth in the USA (+2.2%) was fully driven by the domestic market while inbound spending declined by a marginal 1%. The drop in inbound spending is attributed both to the dollar’s strengthening against many other currencies resulting in international visitors spending less on their trips, and a slowing of visits in the second half of the year, particularly from Germany and key Asian markets (China, South Korea and Japan). Indeed, international visitor numbers from China were flat in 2018, caused in part by deteriorating trade relations between the two countries.

44.2 MNEMPLOYMENT CONTRIBUTION


3.5

NORTH AFRICASOUTH ASIA

NORTHEAST ASIACENTRAL ASIA

SOUTHEAST ASIAOTHER EUROPE

OCEANIASUB-SAHARAN AFRICAEUROPEAN UNION

LATIN AMERICANORTH AMERICA

CARIBBEANMIDDLE EAST

0% 2% 4% 6% 8%

8.6% 7.2% 6.6% 6.3% 6.2% 6.2% 3.5% 3.3% 2.7% 2.4% 2.3% 2.1%0.6%

CHART 7: SUB-REGIONAL T&T GDP GROWTH, 2018

EUROPE

US$2.2 TNTOTAL CONTRIBUTION TO GDP 3.1% Europe recorded a 3.1% growth in Travel & Tourism GDP (outpacing the 2% growth in the wider economy), driven by the rise in international visitor spending (+4.9%). Among the bigger economies, Turkey (+15.0%), Portugal (+8.1%) and Greece (+6.9%) witnessed the fastest growth. Growth in Turkey was driven by safety improvements and depreciation of its currency, making the country more attractive to foreign visitors. Meanwhile, continuous strong performance of Travel & Tourism in Portugal and Greece is in part attributed to supportive government strategies which prioritise the sector. These includes strategies to overcome seasonality and to spread tourists to less visited areas.

In the UK, negative sentiment related to Brexit is thought to have led to a fall in interest amongst Europeans – a key source market for the UK – and resulted in a near 10% decline in international visitor spending. However, moderate growth of domestic spending (+3.2%) helped Travel & Tourism to grow by 1% overall.


MIDDLE EAST

US$237 BNTOTAL CONTRIBUTION TO GDP 0.6%

At 0.6%, the Middle East was the slowest growing region in 2018. Travel & Tourism GDP growth was dragged down by Saudi Arabia and Qatar which recorded declines of 1.3% and 5.1% on the back of political tensions. Meanwhile, the strongest growth in the region was witnessed in Jordan at 5.7%, followed by Kuwait (5.3%) and Israel (2.7%). In the UAE, Travel & Tourism expanded by 2.4% in 2018.


AFRICA

US$194 BNTOTAL CONTRIBUTION TO GDP 5.6%Travel & Tourism GDP grew by 5.6% in 2018, significantly above the African economy growth rate of 3.2%. This places Africa as the second-fastest growing region in 2018, behind only Asia-Pacific. Such growth is partly explained by North Africa’s rebound from security crises as well as the development and implementation of policies that promote travel facilitation.

Ethiopia stands out not only as Africa’s fastest growing Travel & Tourism economy but indeed the world’s, growing by 48.6% in 2018; driven mainly by international visitor spending. Growth can be attributed, in part, to Ethiopia’s improved connectivity as a regional transport hub and to recent visa relaxation policies. Meanwhile, Egypt’s tourism sector has demonstrated considerable resilience, growing by 16.5%. This follows continued safety improvements in the country and in key destinations such as Sharm El-Sheikh, helping to entice international tourists back to the northern coast.


ASIA PACIFIC

US$2.9 TNTOTAL CONTRIBUTION TO GDP 6.4%Asia-Pacific was the strongest growing region in terms of Travel & Tourism GDP in 2018 on the back of an expanding middle-class, greater connectivity and improved infrastructure. China grew by 7.3%, accounting for 51% of regional Travel & Tourism GDP (and 17% of the sector’s GDP globally). Chinese visitors were responsible for the strongest contribution to inbound spend in Southeast Asia, where the largest Travel & Tourism economy in the region, Thailand, grew by 6.0%. Solid performance across all Travel & Tourism indicators in India led to a strong growth of 6.7% as its middle class continues to thrive. Central Asia recorded respectable levels of Travel & Tourism GDP growth, driven by strong activity in Kazakhstan and Uzbekistan due to visa relaxation and infrastructure improvements.



LARGEST & FASTEST GROWING TRAVEL & TOURISM ECONOMIES

3 | LARGEST & FASTEST GROWING TRAVEL & TOURISM ECONOMIES

3.1. TOP 20 LARGEST TRAVEL & TOURISM ECONOMIES

USA and China remained the world’s largest Travel & Tourism economies in 2018, together accounting for 35.2% of the world’s total Travel & Tourism GDP, followed by Japan, Germany and the UK. The top 20 economies where Travel & Tourism GDP growth exceeded global growth of 3.9% include Turkey (+15.0%), the Philippines (+8.9%), Hong Kong (+7.5%), China (+7.3%), India (+6.7%), Thailand (+6.0%), Russia (+4.2%) and France (+4.1%). Over the next decade, strong growth in the sector is set to continue, particularly across Asia where China will overtake the USA as the world's largest Travel & Tourism economy. Meanwhile, India's Travel & Tourism contribution to GDP will more than double, enabling the country to climb from eighth position in 2018 to third place by 2029.

Domestic travel is the main driving force of the sector in major economies. In fact, in the five largest Travel & Tourism economies in the world (USA, China, Japan, Germany and the UK), domestic tourism accounted for at least 80% of the total Travel & Tourism spending. Strong domestic tourism in most of these countries is driven by a growing or sizeable middle-class population, an increase in spending power among domestic consumers, the sheer size of the countries’ economies and populations, governments’ initiatives in promoting new locations, and strong or improving transportation infrastructure and economic links between different internal regions. This contrasts with Spain, Turkey and Thailand, also significant Travel & Tourism economies, but where the majority of Travel & Tourism spending comes from international tourists. In Thailand, in particular, 80.2% of spending is attributed to international visitors.

TABLE 1: TOP 20 LARGEST TRAVEL & TOURISM ECONOMIES, 2018

2018 2018 RANK

2018 T&T CONTRIBUTION TO GDP (US$

BN)

2018T&T % OF COUNTRY

GDP

2018T&T GDP GROWTH

(%)

2018-29 T&T GDP GROWTH CAGR %

DOMESTIC SPEND, % SHARE OF

TOTAL, 2018

INTERNATIONAL SPEND, % SHARE OF

TOTAL, 2018

LEISURE SPEND, % SHARE OF

TOTAL, 2018

BUSINESS SPEND, % SHARE OF

TOTAL, 2018

USA 1 1,595 7.8 2.2 2.6 81.2 18.8 71.3 28.7

CHINA 2 1,509 11.0 7.3 6.5 85.8 14.2 81.4 18.6

JAPAN 3 368 7.4 3.6 1.7 82.5 17.5 68.5 31.5

GERMANY 4 345 8.6 1.2 1.6 85.2 14.8 83.1 16.9

UK 5 311 11.0 1.0 1.9 84.4 15.6 65.9 34.1

ITALY 6 275 13.2 3.2 1.7 76.2 23.8 79.1 20.9

FRANCE 7 266 9.5 4.1 2.0 65.7 34.3 80.5 19.5

INDIA 8 247 9.2 6.7 7.0 87.2 12.8 94.8 5.2

SPAIN 9 211 14.6 2.4 2.5 44.8 55.2 88.5 11.5

MEXICO 10 209 17.2 2.4 3.2 85.2 14.8 94.1 5.9

AUSTRALIA 11 154 10.8 3.2 2.8 76.1 23.9 84.4 15.6

BRAZIL 12 153 8.1 3.1 2.4 93.8 6.2 87.9 12.1

CANADA 13 111 6.4 2.9 2.3 76.3 23.7 63.7 36.3

THAILAND 14 110 21.6 6.0 5.0 19.8 80.2 90.6 9.4

TURKEY 15 96 12.1 15.0 4.2 38.6 61.4 87.4 12.6

PHILIPPINES 16 81.5 24.7 8.9 5.2 86.7 13.3 64.8 35.2

RUSSIA 17 78.6 4.8 4.2 2.3 69.9 30.1 80.8 19.2

AUSTRIA 18 70.4 15.4 3.6 2.4 53.5 46.5 84.9 15.1

SAUDI ARABIA 19 65.2 9.0 -1.3 2.8 54.8 45.2 85.3 14.7

HONG KONG 20 63.3 17.4 7.5 3.4 22.6 77.4 83.5 16.5

2018 Travel & Tourism GDP growth highlighted in green when it is above global Travel & Tourism GDP growth of 3.9%


3.2. TOP 20 FASTEST GROWING TRAVEL & TOURISM ECONOMIESThe world’s fastest growing countries in terms of Travel & Tourism GDP are dominated by emerging and developing economies. This showcases the sector’s ability to spread its benefits widely across the world and the opportunities that tourism brings as a tool for development. In effect, Ethiopia (+48.6%), Ecuador (+21.6%), St Kitts and Nevis (+16.8%), Egypt (+16.5%) and Turkey (+15.0%) led the world for Travel & Tourism GDP growth in 2018.

In most of the fastest growing countries, strong Travel & Tourism GDP growth has been driven by international visitor spending and comes on the back of particular factors that are often influenced by government decisions that recognise the importance of the sector:

- visa relaxation (e.g. Ethiopia, Uzbekistan)- currency depreciation (e.g. Turkey, Egypt)- improved connectivity and infrastructure (e.g. Ethiopia, Ecuador, Rwanda, Uzbekistan, Macau, Sri Lanka, Uganda, Georgia,

Cambodia, the Philippines)- rebound from security threats (e.g. Egypt, Turkey, Tunisia)- rebound from natural disasters and pandemics (St Kitts and Nevis, Sao Tome, St Vincent and the Grenadines, Guinea)- prioritisation of the sector (e.g. Rwanda, Georgia)- transformation and development of the tourism offer (e.g. Macau)

CHART 8: TOP 20 COUNTRIES - TRAVEL & TOURISM GDP GROWTH, 2018

48.6%

21.6%

16.8%

16.5%

15.0%

13.8%

13.4%

13.2%

12.7%

12.4%

11.6%

11.5%

11.4%

10.4%

10.2%

8.9%

8.7%

8.6%

8.6%

8.5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

ETHIOPIA

ECUADOR

ST KITTS AND NEVIS

EGYPT

TURKEY

RWANDA

UZBEKISTAN

TUNISIA

MACAU

SRI LANKA

BANGLADESH

UGANDA

GEORGIA

SAO TOME AND PRINCIPE

CAMBODIA

PHILIPPINES

GUINEA

ST VINCENT & THE GRENADINES

MOLDOVA

SEYCHELLES


4 | LEAGUE TABLES

04LEAGUE TABLESWTTC looks at the economic impact of Travel & Tourism across 185 countries, in terms of the major indicators of GDP contribu-tion, employment, visitor exports, and government expenditure investment. This allows for comparisons across countries, now and over the next ten years.

The league tables below highlight a selection of the interesting results from the latest data, showing the countries which are performing the best and expected to grow the fastest.

TABLE 1: TRAVEL & TOURISM TOTAL CONTRIBUTION TO GDP

TABLE 2: TRAVEL & TOURISM GDP GROWTH

ABSOLUTE TERMSIn which countries was the total contribution (absolute terms) of Travel & Tourism to GDP greatest in 2018?

2018

TOTAL GDP 2018 CONSTANT US$BN

1 United States 1595.1

2 China 1509.4

3 Japan 367.7

4 Germany 344.8

5 United Kingdom 310.9

6 Italy 274.9

7 France 265.8

8 India 247.3

9 Spain 211.0

10 Mexico 209.4

FASTEST GROWINGIn which countries did the contribution of Travel &Tourism to GDP grow fastest in 2018?

2018

TRAVEL & TOURISM GDP REAL GROWTH, %

1 Ethiopia 48.6

2 Ecuador 21.6

3 St Kitts and Nevis 16.8

4 Egypt 16.5

5 Turkey 15.0

6 Rwanda 13.8

7 Uzbekistan 13.4

8 Tunisia 13.2

9 Macau 12.7

10 Sri Lanka 12.4

ABSOLUTE TERMSIn which countries will the total contribution (absolute terms) of Travel & Tourism to GDP be greatest in 2029?

2029

TOTAL GDP 2018 CONSTANT US$BN

1 China 3017.0


3 India 511.9

4 Japan 437.1

5 Germany 400.4


7 France 322.3

8 Italy 322.1

9 Mexico 296.0

10 Spain 270.8

FASTEST GROWINGIn which countries will the contribution of Travel & Tourism to GDP grow fastest from 2019-2029?

10-YR REAL GROWTH

TRAVEL & TOURISM GDP ANNUALISED, %

1 Qatar 7.8

2 Myanmar 6.9

3 India 6.8

4 China 6.6

5 Azerbaijan 6.4

6 Anguilla 6.3

7 Uzbekistan 6.2

8 Benin 6.1

9 Bangladesh 6.1

10 Kyrgyzstan 6.1


TABLE 3: TRAVEL & TOURISM EMPLOYMENT(TOP 10 LARGEST COUNTRIES RANKED IN TERMS OF TRAVEL & TOURISM TOTAL CONTRIBUTION TO EMPLOYMENT)

TABLE 4: INTERNATIONAL VISITOR SPENDING

TABLE 5: TRAVEL & TOURISM CAPITAL INVESTMENT

Relative terms - Travel & Tourism as % of all jobs Net jobs created by Travel & Tourism 2018-29 (in 000's)

China 10.3 41,515

India 8.1 10,327

United States 9.2 2,658

Indonesia 10.3 5,530

Mexico 17.8 2,728

Philippines 20.2 2,550

Brazil 7.5 1,316

Thailand 15.9 2,240

Germany 12.0 127

Japan 6.9 408

ABSOLUTE TERMS: In which countries were visitor exports greatest in 2018? 2018

VISITOR EXPORTS 2018 CONSTANT US$BN


2 China 128.9

3 Spain 82.1

4 France 71.0

5 Thailand 70.1

6 Germany 54.8

7 Italy 50.4

8 Hong Kong 43.9

9 Japan 43.2

10 United Arab Emirates 37.3

ABSOLUTE TERMS: In which countries was capital investment in Travel & Tourism highest in 2018? 2018

CAPITAL INVESTMENT 2018 CONSTANT US$BN


2 China 161.5

3 India 45.7

4 France 39.0

5 Japan 36.3

6 Germany 32.8


8 Saudi Arabia 24.8

9 Spain 20.4

10 Brazil 18.6

RELATIVE TERMS: In which countries were visitor exports the greatest in 2018? 2018

VISITOR EXPORTS % OF TOTAL EXPORTS

1 Aruba 84.5

2 Macau 80.6

3 Cape Verde 73.2

4 Reunion 71.5

5 Maldives 70.9

6 Gambia 66.6

7 Bahamas 66.1

8 Sao Tome and Principe 65.6

9 Tonga 64.4

10 Vanuatu 63.3

In which countries will capital investment in T&T grow fastest between 2019 & 2029?

10-YR REAL GROWTH

CAPITAL INVESTMENT ANNUALISED, %

1 Qatar 7.8

2 United Arab Emirates 7.7

3 Central African Republic 7.7

4 India 7.4

5 Tanzania 7.2

6 Luxembourg 7.0

7 Vanuatu 7.0

8 Guinea 7.0

9 Bahrain 6.8

10 Cambodia 6.6


05GLOSSARY


GLOSSARY | 5

TRAVEL & TOURISMRelates to the activity of travellers on trips outside their usual environment with a duration of less than one year. Economic activity related to all aspects of such trips is measured within the research.

DIRECT CONTRIBUTION TO GDPGDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transport services, as well as the activities of restaurant and leisure industries that deal directly with tourists. It is equivalent to total internal Travel & Tourism spending (see below) within a country less the purchases made by those industries (including imports). In terms of the UN’s Tourism Satellite Account methodology it is consistent with total GDP calculated in table 6 of the TSA: RMF 2008.

DIRECT CONTRIBUTION TO EMPLOYMENTThe number of direct jobs within Travel & Tourism. This is consistent with total employment calculated in table 7 of the TSA: RMF 2008.

TOTAL CONTRIBUTION TO GDPGDP generated directly by the Travel & Tourism sector plus its indirect and induced impacts (see below).

TOTAL CONTRIBUTION TO EMPLOYMENTThe number of jobs generated directly in the Travel & Tourism sector plus the indirect and induced contributions (see below).

DIRECT SPENDING IMPACTS

VISITOR EXPORTSSpending within the country by international tourists for both business and leisure trips, including spending on transport, but excluding international spending on education. This is consistent with total inbound tourism expenditure in table 1 of the TSA: RMF 2008.

DOMESTIC TRAVEL & TOURISM SPENDINGSpending within a country by that country’s residents for both business and leisure trips. Multi-use consumer durables are not included since they are not purchased solely for tourism purposes. This is consistent with total domestic tourism expenditure in table 2 of the TSA: RMF 2008. Outbound spending by residents abroad is not included here, but is separately identified according to the TSA: RMF 2008 (see below).

GOVERNMENT INDIVIDUAL SPENDINGSpending by government on Travel & Tourism services directly linked to visitors, such as cultural services (eg museums) or recreational services (eg national parks).

INTERNAL TOURISM CONSUMPTIONTotal revenue generated within a country by industries that deal directly with tourists including visitor exports, domestic spending and government individual spending. This does not include spending abroad by residents. This is consistent with total internal tourism expenditure in table 4 of the TSA: RMF 2008.

BUSINESS TRAVEL & TOURISM SPENDINGSpending on business travel within a country by residents and international visitors.

LEISURE TRAVEL & TOURISM SPENDINGSpending on leisure travel within a country by residents and international visitors.

INDIRECT AND INDUCED IMPACTS

INDIRECT CONTRIBUTIONThe contribution to GDP and jobs of the following three factors:

• CAPITAL INVESTMENT: Includes capital investment spending by all industries directly involved in Travel & Tourism. This also constitutes investment spending by other industries on specific tourism assets such as new visitor accommodation and passenger transport equipment, as well as restaurants and leisure facilities for specific tourism use. This is consistent with total tourism gross fixed capital formation in table 8 of the TSA: RMF 2008.

• GOVERNMENT COLLECTIVE SPENDING: Government spending in support of general tourism activity. This can include national as well as regional and local government spending. For example, it includes tourism promotion, visitor information services, administrative services and other public services. This is consistent with total collective tourism consumption in table 9 of TSA: RMF 2008.

• SUPPLY-CHAIN EFFECTS: Purchases of domestic goods and services directly by different industries within Travel & Tourism as inputs to their final tourism output.

INDUCED CONTRIBUTIONThe broader contribution to GDP and employment of spending by those who are directly or indirectly employed by Travel & Tourism.

OTHER INDICATORS

OUTBOUND EXPENDITURESpending outside the country by residents on all trips abroad including passenger fares. This is fully aligned with total outbound tourism expenditure in table 3 of the TSA: RMF 2008.

FOREIGN VISITOR ARRIVALSThe number of arrivals of foreign visitors, including same-day and overnight visitors (tourists) to the country.


The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism.

WTTC promotes sustainable growth for the Travel & Tourism sector, working with governments and international institutions to create jobs, to drive exports and to generate prosperity. Council Members are the Chairs, Presidents and Chief Executives of the world’s leading private sector Travel & Tourism businesses.

Together with Oxford Economics, WTTC produces annual research that shows Travel & Tourism to be one of the world’s largest sectors, supporting over 319 million jobs and generating 10.4% of global GDP in 2018. Comprehensive reports quantify, compare and forecast the economic impact of Travel & Tourism on 185 economies around the world. In addition to individual country fact sheets, and fuller country reports, WTTC produces a world report highlighting global trends and 25 further reports that focus on regions, sub-regions and economic and geographic groups.

To download reports or data, please visit www.wttc.org

Assisting WTTC to Provide Tools for Analysis, Benchmarking, Forecasting and Planning.

Oxford Economics is a leader in global forecasting and quantitative analysis. Our worldwide client base comprises more than 1,500 international corporations, financial institutions, government organisations, and universities. Headquartered in Oxford, with offices around the world, we employ 300 people, including 200 economists and analysts. Our best-of-class global economic and industry models and analytical tools give us an unmatched ability to forecast external market trends and assess their economic, social and business impact. For more information, visit www.oxfordeconomics.com

Contributing data to the WTTC Economic Impact Model

STR is the source for premium hotel data benchmarking, analytics and marketplace insights. STR provides data that is reliable, confidential, accurate and actionable, and their comprehensive solutions empower clients to strategize and compete within their markets. The company’s range of products includes data-driven solutions, thorough analytics and unrivalled marketplace insights, all built to fuel business growth and help clients make better operational and financial decisions. STR maintains a presence in 15 countries and collects data for over 59,000 hotels across 180 countries.

ForwardKeys analyses more than 17m flight booking transactions a day, drawing data from all the major global air reservation systems and selected airlines and tour operators. This information is enhanced with further independent data sets, including flight search and official government statistics, plus data science to paint a picture of who is travelling where and when. ForwardKeys’ analytics are used by traveller-focussed businesses worldwide to monitor and anticipate traveller arrivals from a particular origin market at a specific time. This analysis enables parties to anticipate the impact of events, better manage their staffing levels, fine tune supply requirements, adjust and measure the effectiveness of their marketing efforts and anticipate future market trends.


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